CSN projects high iron ore output to 31.5 million tonnes

Steel News - Published on Mon, 17 Dec 2018

CSN reported in a relevant fact published in the Brazilian Securities and Exchange Commission estimates for its annual production of iron ore by 2023. This year, the steelmaker forecasts a production of 28.5 million tons, a volume that will grow to 31. 5 million tonnes in 2019. The following year, according to the company's projection, the volume will decrease slightly to 30.7 million tonnes, returning to grow to 31.2 million tonnes in 2021. Finally, in 2022, the production estimated by CSN is 36.6 million tonnes of iron ore, rising to 38 million tonnes in 2023.

In this range of projections, the company works with a continuous increase in the production of the ore called "Pellet feed", used to feed the pelletizing process, which transforms the ore fines into pellets that will be loaded in the blast furnaces. In 2018, CSN estimates it will produce 3.5 million tonnes of this production, reaching 5.9 million tonnes in 2019, 5.4 million in 2020, 9 million in 2021, when the Itabirito plant starts operating, reaching 14.3 million tonnes in 2022 and 2023.

Meanwhile, the production of Sinter feed / granulated ore, which is agglomerated via the sintering process to allow its use by blast furnaces, will be 25 million tonnes by 2018, rising to 25.6 million by 2019. 2020, the production of this ore falls to 25.3 million tonnes, falling again to 22.2 million tonnes in 2021, a volume that should be repeated in 2022. The following year, CSN estimates that the volume will rise again to 23.7 million.

In addition to the material fact, CSN published a presentation with the company's main data. The company says it has the goal of achieving leverage, measured net debt / Adjusted Ebitda, of 3.5 times over the horizon of 6 to 12 months. In the third quarter, this indicator was 4.93 times.

Among the options to achieve this goal, CSN lists the sale of Stahlwerk Thüringen a long steel producer located in Unterwellenborn, Germany; Fixed volumes agreement for a fixed term, without risk sharing, with JKTC, company with which it has a joint venture in Congonhas Minérios; and future sale of percentage of production for the life of the mine, with risk sharing.